Aztec Minerals Tipped for Major Find, Alamos Invests

Key Takeaway

• Clive Maund rates Aztec Minerals Corp. as a Strong Buy, highlighting potential major gold and silver discoveries in Arizona and NW Mexico.
• Technical analysis suggests the end of a bear market for Aztec, with stock patterns indicating readiness for significant value increase.
• Insider ownership at 14% and strategic investment by Alamos Gold underscore confidence in Aztec's growth potential and acquisition prospects.

Aztec Minerals: A Strong Buy Perspective

Technical Analyst Clive Maund has labeled Aztec Minerals Corp. as a Strong Buy, citing the company's potential for significant discoveries in gold and silver within Arizona and NW Mexico. This assessment comes at a time when the mining sector is anticipated to enter a major bull market, driven by a variety of factors. Aztec Minerals, with its shares trading at relatively low prices, is positioned to potentially increase its value significantly, which could lead to it being acquired at a premium by a larger mining entity.

The company's key properties include the Tombstone property, primarily focused on gold and silver, located near Tombstone, Arizona, and the Cervantes property in NW Mexico, mainly targeting gold. The Tombstone property is noted for its proximity to other significant deposits, suggesting similar potential for substantial gains. The Cervantes property is surrounded by operations of other notable companies like Agnico-Eagle and Alamos Gold, indicating a region of high interest.

Aztec Minerals' capital structure reveals that insiders own 14% of the 109 million shares issued, with 35% being closely held. Alamos Gold is highlighted as a strategic investor, underscoring the company's solid backing and potential for growth.

Technical Analysis and Market Potential

Maund's analysis includes a review of Aztec Minerals' stock charts, suggesting that the persistent bear market the stock has experienced since mid-2020 may have concluded. The formation of a Cup and Handle base pattern on the long-term 9-year chart indicates a potential for the stock to significantly increase in value, especially in the context of the anticipated bull markets for gold, silver, and copper.

The recent upside volume buildup and the Accumulation line's positive turn are interpreted as signs that a new bull market for Aztec Minerals is on the horizon. A closer look at the 2-year and 7-month charts reveals a base pattern classified as a Double Bottom, with recent actions suggesting the completion of this pattern and readiness for an upward movement.

Strategic Positioning and Exploration Prospects

Aztec Minerals' strategic positioning in mining-friendly areas, coupled with its focus on gold and silver, aligns with the broader market's bullish outlook on these metals. The company's properties are in regions known for significant mining operations and discoveries, enhancing the prospects for substantial findings.

The potential for Aztec Minerals to become a takeover target is openly acknowledged, drawing parallels with the success story of Arizona Mining, which saw considerable gains after its acquisition by South32. This narrative underscores the high stakes and opportunities within the mining sector, particularly for companies like Aztec Minerals that are on the cusp of potentially major discoveries.

Street Views

• Clive Maund, Technical Analyst (Bullish on Aztec Minerals Corp.):

  "The reason that it is of interest to us as investors and speculators is that its shares are currently trading at relatively low prices at a time when the entire mining sector is at the point of embarking on a major bull market for a variety of reasons likely to be of unprecedented proportions." "One big reason is that all of the action from the mid-2020 spike high is thought to constitute the Handle of the giant Cup and Handle base depicted on the chart... it implies that the stock will, in due course, blast right out of the top of this pattern..." "Aztec Minerals is therefore rated a Strong Buy for all timeframes."